"It suggests that supply is responding to demand," NCVER
managing director Tom Karmel said in a statement.

"Industries in need of skilled people are turning to the
apprenticeship system, and people looking to start or change their
careers are taking these opportunities."

Dr Karmel said the overall number starting an apprenticeship or
traineeship in the year was slightly higher (260,000) than the
previous quarter (255,700), but down seven per cent from a year
earlier (281,400).

Vocational and Technical Education Minister Gary Hardgrave said
the figures were encouraging.

"Importantly, over the past year, we have given a high priority
to supporting the marketing of new apprenticeships in the trades,"
he said.

"These include the establishment of 24 Australian technical
colleges and the provision of trade learning scholarships for
apprentices worth $500 for the completion of year 1 and 2."

But opposition training spokeswoman Jenny Macklin said the NCVER
figures showed there was a record high of 36,100 students
withdrawing from an apprenticeship in the September 2004
quarter.

"In the last year, a staggering 135,300 people pulled out of an
apprenticeship," Ms Macklin said.

"The NCVER figures reveal that for every person completing an
apprenticeship, one person drops out."

Ms Macklin said there had been an 18.4 per cent increase in the
number of apprenticeship withdrawals and cancellations between the
September 2003 and September 2004 quarters.

"The figures are an astounding indictment of the Howard
government at a time when everyone from the Reserve Bank to the
OECD is shouting warnings about Australia's skills crisis," she
said.